Académique Documents
Professionnel Documents
Culture Documents
Management Programme
ASSIGNMENT
FIRST SEMESTER
2015
ASSIGNMENT
Course Code
Course Title
Assignment Code
Coverage
:
:
:
:
MS-04
Accounting and Finance for Managers
MS-04/TMA/SEM-I/2015
All Blocks
Note : Attempt all the questions and submit this assignment on or before 30th April, 2014 to
the coordinator of your study center.
1. Accounting is closely connected with control. Elaborate this statement and discuss the
role of accounting feedback in the process of control.
2. The balance sheets of XYZ Ltd. as on Dec. 31st, 2013 and 2014 are given below:
Balance Sheets of XYZ Ltd.
(Figures in Rs.)
Liabilities
Share Capital
31.12.2013 31.12.2014
6,00,000
Assets
31.12.2013 31.12.2014
16,00,000
19,00,000
4,60,000
5,80,000
11,40,000
13,20,000
Capital Reserve
----
General Reserve
3,40,000
4,00,000
1,20,000
1,50,000 Investment
2,00,000
1,60,000
Debentures
4,00,000
5,60,000
6,60,000
Current
Liabilities
2,40,000
40,000
20,000
Proposed
Dividend
60,000
72,000
1,80,000
1,70,000
Unpaid dividends
---
8,000
19,40,000
21,60,000
19,40,000 21,60,000
Additional Information:
During the year 2014, the Company:
1. Sold one machine for Rs. 50,000, the cost of which was Rs. 1,00,000 and the
depreciation provided on it was Rs. 40,000.
2. Provided Rs. 1,80,000 as depreciation.
3. Sold investments at a profit of Rs. 20,000, which was credited to Capital Reserve.
4. Redeemed 30% of the Debentures @ 105.
5. Decided to value stock at cost, whereas previously the practice was to value stock at
cost less 10%. The stock according to books on 31.12.2013 was Rs. 1,08,000. The
stock on 31.12.2014 was correctly valued at Rs. 1,50,000, and
6. Decided to write of fixed assets costing Rs. 28,000 on which depreciation amounting
to Rs. 20,000 has been provided.
Prepare the Funds flow statement for the year 2014.
3.
A company engaged in production of dairy products wants to buy a new spray dryer
to replace one which is having frequent breakdown. It received offers for two models
of spray dryers S1 and S 2. Further details regarding these models are given below:
Particulars
S1
Installed capacity
(units)
S2
10,000
10,000
(Rs.)
2,40,000
1,00,000
(Rs.)
1,60,000
1,00,000
The skimmed milk powder manufactured using this type of machine (S1 or S 2) is
sold at Rs. 100 per unit.
You are required to determine:
(a) Break even level of sales for each model.
(b) The level of sales at which both the models will earn the same profit.
(c) The model suitable for different levels of demand for the product.
4.
5.
Rearrange the given statement in a form suitable for analysis and calculate:-
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
2014
Rs.
Rs.
Cash at Bank
1,53,800
2,60,200
Trade debtors
1,12,600
1,17,100
Stock
5,61,600
4,94,600
21,72,000
21,98,100
----------------30,00,000
--------------30,70,000
2,00,000
1,60,000
1,27,500
65,000
10,00,000
10,00,000
6,72,500
8,45,000
10,00,000
10,00,000
----------------
----------------
30,00,000
30,70,000
18,00,000
19,50,000
Assets:
Sales